November 2014 Financial Update

Conference Budget – Schedules A & B

Please reference Schedule A and Schedule B for a summary of the conference budget through October 2014. As a result of the faithful giving of EPA local churches to the connectional ministries fund or CMF we ended 2013 with a very strong result of $3,279,179. While this was short of the budget goal of $3.4 million by $120,821 or 3%, it was a reasonable variance. Given the ongoing struggles of many churches we are pleased and grateful for the commitment made by many to support this vital ministry.

Through November 2014 giving from local churches to CMF was $2,810,134. This was $306,532 less than budget and $49,802 less than the amount received from November 2013. An analysis after eleven months (Schedule E) shows that 231 churches, 55% are “on budget”.

However, there are 107 churches or 26% that have paid less than 50%. Thirty-Seven (37) churches have paid zero through November toward CMF. The district offices and CCFA are kept abreast of this and are taking steps to follow up.

Schedule D provides an analysis of church giving to CMF for a seven year period (2008-2014). A total of $286,100 was received in November and this was the highest total for the month in the seven year period. A total of $589,866 is needed in December to reach the budget goal of $3.4 million. A more realistic result based on the three year average 2011-2013 for the month of December is a total of around $400 thousand. This would bring the year end amount to $3.2 million or $200 thousand short of the goal.

The conference expense budget was managed very effectively in 2013 by all committee, boards, agencies and others. Total expenses were $2,749,881, $100,255 or 3.5% less than the 2013 budget of $2,850,136, and $156,994 or 5.4% less than 2012 expenses. In addition, the 2013 conference budget included a line item of $549,864 to be directed to the Pre-82 Unfunded Liability. The good news is that 2013 ended producing $529,298 to the Pre-82 Pension Liability only $20,566 or 3.7% short of the budget goal. Lower expenses helped to offset the shortfall in giving. In the first two years under resolution 2012-21, the conference budget directed a total of $731,381 to the Pre-82 Pension Liability.

Through November 2014, conference expenses totalled $2,570,106, and were $120,265 or 5% less than budget. For cost center budgets, reference Schedule B.

Church Giving All Funds – Schedule C

Schedule C is a summary of all funds billed to the EPA local churches showing the amount billed, amount paid and balance remaining. This information is reported for the current year through November 2014 with comparative information for the previous year at the same period. In addition, the schedule shows the paid results for three previous full years, 2013, 2012 and 2011. Through November 2014 a total of $14.3 million or 79% of the total billed was paid by local churches for all funds. At the same period a year ago, churches paid 80% of the amount billed for all funds.

Schedule E, is a chart depicting the giving through eleven months for the three apportioned funds (CMF, WSF, GCF) and for some of the larger billed funds (RCPHO, former Direct Bill, CRSP Defined Benefits, Property & Liability, and Clergy Group Insurance). Most of the churches are on budget, but as the chart shows there are a significant number of churches that are not paying anything or are behind with payments through November 2014.. A full report listing all funds for all churches is provided each month to CCFA and the Cabinet.

Trial and Complaint Expenses

To date, a total of $115,260 has been incurred for expenses related to Rev. Frank Schaefer’s trial and other complaint expenses.

Update Resolution 2012-21 – Schedule F

There is good news to report in that the most recent figure received last month from the General Board of Pension & Health Benefits shows the Pre-82 unfunded liability for the conference at $8,290,272, a decline of $2 million from the unfunded liability figure from a year ago.

The 2013 conference budget included a line item of $549,864 to be directed to the Pre-82 Unfunded Liability according to Resolution 2012-21. The year ended producing $529,298 to the Pre-82 Pension Liability only $20,566 short of the budget goal. In the first two years under resolution 2012-21, the conference budget directed a total of $731,381 to the Pre-82 Pension Liability. The balance in this account as of November 30, 2014 is $786,592.

As to the strategy in the resolution on church sales, since the resolution was passed there have been four church sales that generated net proceeds of $398,516. Fifty percent (50%) or $199,258 has been directed to the Pre-82 Pension Liability and the balance in the account as of November 30, 2014 is $218,517. A total, from these two strategies directed to the Pre-82 unfunded liability after two years is $1,005,109.

Fulfilling Our Covenant Stewardship Campaign is the third strategy included in Resolution 2012-21. The goal was to raise a minimum of $3 million. To date, a total of $3,743,024 has been pledged from individuals and churches. Through November 30, 2014; a total of $1,315,483 has been paid, with $200,701 going to the churches participating in a local campaign and campaign expenses totaling $353,033, for a net amount generated from this strategy of $761,749.

The grand total for all three strategies is $1,766,859. Separate accounts for each fund are established at Fulton Bank and managed by the Mid Atlantic Foundation of the United Methodist Church.